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Merrimac Brewing Company's Total Assets Equal $18 Million

Question 35

Multiple Choice

Merrimac Brewing company's total assets equal $18 million. The book value of Merrimac's equity is $6 million. Excess cash is $200,000. The market value of Merrimac's equity is $10 million. It's Debt to Enterprise Value ratio is .5. What is Merrimac's Debt Ratio?


A) .75
B) .67
C) .33
D) .25

Correct Answer:

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